Highlights
- Lucid Motors filed notice June 22 of approximately 700 Arizona job cuts, part of an 18% global workforce reduction.
- New CEO Silvio Napoli, who took the role June 1, is eliminating the second production shift at the Casa Grande factory.
- The restructuring follows a 12% cut four months ago and is projected to generate $158 million in annualized savings.
- Lucid is counting on its Cosmos SUV, targeted under $50,000, to drive a path to profitability later in 2026.
Lucid Motors filed a WARN Act notice on June 22 indicating plans to cut approximately 700 jobs in Arizona, part of an 18% global workforce reduction that will eliminate roughly 1,500 positions companywide, according to KPNX and Electrek.
The cuts are the second deep reduction in four months. Lucid shed 12% of its workforce in February, when the company reported approximately 9,000 employees globally at the end of 2025. The June action also eliminates the second production shift at the company's Casa Grande, Arizona assembly plant, where the Air sedan and Gravity SUV are built.
New CEO Silvio Napoli, who formally assumed the role June 1 after serving as chairman and CEO of Swiss elevator manufacturer Schindler Group, is driving the restructuring. The company also eliminated the COO role as part of the reorganization, according to Business Insider. Lucid projects $158 million in annualized savings from the combined measures.
Why is Lucid cutting production in Arizona now?
Napoli moved quickly after taking over June 1 to reduce operating costs at the Casa Grande plant, where a second shift had been running to support Gravity SUV output. Eliminating that shift, combined with the workforce reduction, is intended to align production capacity with current demand while the company waits on its next vehicle.
Lucid's near-term bet is the Cosmos SUV, a model the company is targeting at under $50,000 and expects to launch later in 2026. The Air, which starts above $69,000, and the Gravity have not generated the sales volume needed to cover the company's cash burn. The Phoenix Business Journal reported more than 1,400 employees will be laid off companywide, with hundreds of those positions in Arizona.
The Cosmos launch timeline and a subsequent earnings update are the next markers for investors and Casa Grande workers watching the company's trajectory.
Where to find them
- Schindler Group · group.schindler.com · Instagram · Facebook
Sources
Every factual claim in this article traces to one of the sources below. See how we work for the editorial process.
- 12News retrieved 23/06/2026 00:08
- electrek.co retrieved 23/06/2026 00:08
- businessinsider.com retrieved 23/06/2026 00:08
- Phoenix Business Journal retrieved 23/06/2026 00:08
- Schindler Group (official site) retrieved 23/06/2026 00:08
Authored by The Scottsdale Signal. Drafted by AI from primary-source material under our beat-specific editorial guides; reviewed by humans before publish under our five-gate process. Sources retrieved at 23/06/2026 00:08. Every claim traces to a source.
